The Ofgem energy price cap from 1 October to 31 December 2026
Published · 4 min read · Figures checked . UK rules and rates change, so check the official sources below before you act.
The Ofgem price cap sets the most a supplier can charge per unit of energy and for the daily standing charge. This guide explains what the cap is, the October to December 2026 figures, the change to VAT on electricity and what the cap does not do.
Who this guide is for
This guide is general information for households in England, Scotland and Wales who pay for gas or electricity. Ofgem says its headline figure is based on average rates for people who pay by Direct Debit in England, Scotland and Wales. The Ofgem pages used here do not give figures for Northern Ireland, so this guide does not cover it. It is not advice for your own situation, and it does not cover businesses.
The figures below apply from 1 October to 31 December 2026 and were checked on Ofgem and GOV.UK pages on 7 October 2026.
What the price cap is
Ofgem is the energy regulator. Its price cap sets the maximum a supplier can charge for each unit of electricity and gas, and for the standing charge, which is a daily fee you pay even on a day when you use no energy. Ofgem says the cap is set every three months.
The cap applies to standard variable tariffs, where prices can move with the market. Ofgem says it does not apply to fixed-rate deals, business contracts or heat networks.
Importantly, the cap is not a limit on your total bill. Ofgem is clear that the more energy you use, the higher your bill will be.
The figures for October to December 2026
Ofgem says the cap for this period is £1,723 per year. This is a figure for an average Direct Debit customer, used to compare one period with another. Your own bill depends on how much energy you use and where you live. Ofgem says this is up 4% on the previous cap period.
Ofgem also publishes the average unit rates and standing charges for Direct Debit customers in this period:
- Electricity: 26.32 pence per kWh (a kWh, or kilowatt hour, is the unit your meter counts), with a standing charge of 54.83 pence a day.
- Gas: 7.97 pence per kWh, with a standing charge of 29.68 pence a day.
Rates differ by region and by how you pay. Ofgem publishes separate tables for standard credit and prepayment meter customers.
VAT on electricity
Ofgem says its figures include 5% VAT on gas, and that there is no VAT on electricity from 1 October 2026 to 31 March 2027. GOV.UK says VAT will be removed from household electricity bills from 1 October 2026 and gives an average saving of £45 a year. It says the exact saving depends on the price your supplier sets and how much you use.
GOV.UK says this applies to fixed energy tariffs too, that people on pre-payment meters get it when they top up, and that no action is needed. It says the cut has been funded for the 2026 to 2027 financial year. VAT on gas is not part of this change.
What this can mean in practice
Because the cap works per unit, two homes on the same tariff can pay very different amounts. Standing charges also mean there is a fixed cost even when use is low. If you are on a fixed deal, the cap does not set your rates, but the electricity VAT change still applies, according to GOV.UK.
When the cap changes next
Ofgem reviews the cap every three months, so the figures above apply to this period only. The next period is expected to start on 1 January 2027, and any new rates will be published by Ofgem before then.
Free help
If paying bills is difficult, free and impartial help is available from Citizens Advice and MoneyHelper. Many people find it helps to speak to their supplier early, and Ofgem's website explains what support suppliers are expected to offer.
Check before you act
Rates and rules change, and your own rates depend on your region and how you pay. It is worth confirming the figures on the official pages linked below before relying on anything in this guide.
Sources
For information only. See our disclaimer and editorial standards. Spotted an error? Tell us.
